Foreclosures in Massachusetts up 80 percent

More Massachusetts homeowners may be forced into moving because of the threat of foreclosure.

There were 1,243 foreclosure deeds recorded in the state in July, an 80 percent year-over-year increase - although they did decrease on a month-to-month basis, reported the Warren Group.

2010 has been a particularly rough year for Massachusetts foreclosures, with many distressed homeowners left with no choice but to relocate from homes that they couldn't afford. In fact, the report added that the state is likely to out-pace foreclosure activity from the past two years. There were 12,430 and 9,269 foreclosures in 2008 and 2009, respectively, while there have already been 8,767 so far this year.

Vincent Valvo, editor-in-chief of Banker & Tradesman, said that foreclosure activity will likely climb in the near future. "The homebuyer tax credit could have helped troubled homeowners sell their property and avoid foreclosure. Although petitions to foreclose have fluctuated this year, the real issue is how many homes are lost to foreclosure. The number of deeds are consistently rising."

On a national basis, more underwater homeowners have been forced to move from their homes because of foreclosure, reported CoreLogic. That moving activity has created a decline in the nation's negative equity, essentially a count of the number of homeowners who live in properties that are worth less than the remaining balance on their mortgage.


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